Certifications, Activities, and Employment Outlook for Petroleum Engineers for

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1 Certifications, Activities, and Employment Outlook for Petroleum Engineers for September 14, 2005 English 406 Project 2 Word Count: 1,244 Abstract: The exploration, production, and development of petroleum are performed by petroleum engineers. Petroleum engineers are required to have a Bachelor of Science Degree for employment. Further education is optional and after five years of work experience one is eligible to take an exam to become a Certified Petroleum Engineer. The sources gathered to support this information are from creditable resource databases similar to The Department of Labor and the Occupational Information Network. The activities of a petroleum engineer are sub-divided into two main groups, drilling/completion and production/development. Drilling/completion consist of researching the formation of interest and implementing the optimum drilling and completion procedures. Production/development is the process of determining the most efficient method of extracting petroleum subsurface. The oil industry is heading toward an oil "boom" in the future, which creates a favorable job outlook. 1

2 Table of Contents Introduction Page 3 Certifications Page 4 Responsibilities and Activities Page 5 Employment Outlook Page 6 Conclusion Page 7 Works Cited Page 8 2

3 Introduction: Petroleum is one of the most important fuel sources currently used in today's world. The Elements of Petroleum Geology and Maverick Energy, Inc. describe petroleum as a thick and dark-colored fluid located subsurface of the earth. Petroleum is a mixture of hydrocarbons composed of hydrogen and carbon atoms. It is formed through a long process that requires millions of years of thermal heating and compression of organic material. This organic material over time decays and transforms into kerogen, which eventually becomes petroleum. The petroleum is trapped by a cap rock, an impermeable rock formation such as shale, and stored within pore spaces of permeable rock formations, such as sandstone 5, 6. According to Daniel Yergin, author of The Prize, and the Paleontological Research Institution, the first oil well was drilled in northwestern Pennsylvania in 1859 by "Colonel" Edwin Drake 4, 7. Drake chose to drill the well in that regional location due to active offsetting oil seeps. Once Drake struck oil, acreage around the narrow valley of Oil Creek was quickly leased. Derricks were erected and steam engines and machinery required to operate hundreds of wells were moved into town. Although wells were drilled very close together and frequent fires created safety hazards, people were determined to drill oil wells. This was the beginning of an international search for petroleum, which has changed the way we live. There remains a growing demand for the use of petroleum worldwide. While the demand for petroleum continues to grow, current production rates will increase, which requires more petroleum engineers. Various certifications available to petroleum 3

4 engineers, activities and projects they are involved in, and the future job market for petroleum engineers will be discussed throughout this paper. Certifications: A petroleum engineer has many responsibilities and requires certain certifications for employment. According to the Occupational Information Network and the Career Planner, petroleum engineers develop methods to improve the production of oil and gas wells and also create the need for a new or modified tool design 1, 8. The skills and knowledge needed for this job are no easy feat, however necessary. A petroleum engineer must have basic knowledge of mathematics, English, physics, computers, management, chemistry, economics, production and processing, and engineering and technology, which is represented with a Bachelor of Science Degree certificate. The Occupational Outlook Handbook (OOH) and Bob Chase, Chair of the Petroleum Engineering Program at Marietta College, suggest that most companies hiring petroleum engineers only require the BS Degree 2, 3. However, Chase goes on to say that in some cases documents signed to be turned into the state must require the signature of a Certified Petroleum Engineer. Also, if a petroleum engineer would want to start his/her own independent practice, then he/she would have to be a Certified Petroleum Engineer within that state. Becoming a Certified Petroleum Engineer is optional and can be obtained by passing a written exam following five years of work experience. 4

5 Responsibilities and Activities: Petroleum Engineers explore the world for oil and gas reservoirs and their activities are sub-divided into two main groups, drilling/completion and production/ development. The drilling/completion side of the job begins, according to the U.S. Department of Labor, once these reservoirs are discovered 2. Petroleum engineers work together with geologists and other engineers to determine the best methods of developing the reservoir field. Detailed research is involved in determining which formation or formations store the petroleum and what rock composition is present. As soon as the target formation is decided, the appropriate drilling methods are determined and the petroleum engineer is responsible for the monitoring of these drilling and completion operations. Also, petroleum engineers design new equipment and procedures to economically produce as much of the petroleum reserves as possible. In new fields, as indicated by the OOH, where there are no benchmarks, petroleum engineers imitate the performance of wells using computer simulators to determine which model proves to be most profitable 2. Petroleum engineers determine the most economic and efficient production/ development method that will increase recovery while lowering the costs. Wells that are drilled and are flowing only produce so long by themselves. Once production has dropped to a certain level, depending on the company, secondary enhanced recovery methods are designed and implemented on the well to optimize production. In accordance with the Department of Labor and Dr. Bob Chase, secondary recovery methods include hydraulically fracturing the formation, installing artificial lift systems, 5

6 and the injection of water, steam, gas, or chemicals into offset wells of the producing well in a strategic pattern 2, 3. Employment Outlook: It is important to look at the future job market of petroleum engineers. The OOH states that in 2002 petroleum engineers held about 14,000 jobs in oil and natural gas production, professional, scientific, technical services, and refining divisions and the Bureau of Labor Statistics predict that that by 2012 there will be a 13.6 percent decline 2. The decline is a result of 50 percent of the workforce retiring. According to Dr. Chase and the Department of Labor most petroleum engineers find work where petroleum is discovered. These areas include Texas, Louisiana, Oklahoma, Alaska, Gulf Coast, Appalachian Basin, California, and the Rockies. Petroleum engineers work for major oil companies, smaller independent companies, and service companies. Most of theses companies have had a pyramid organization structure (where one person was the boss and had supervisors below him/her and workers below them). However, Dr. Chase suggests that there is no set organizational model anymore and that most companies are trying to eliminate middle management. This transformation allows young engineers to move into management positions sooner and presents engineers excellent employment opportunities. The job outlook for petroleum engineers is quite favorable. The Department of Labor and Bob Chase propose that the industry should see a "boom" for at least the next ten years due to 50 percent of the workforce retiring, and whether the "boom" continues after that will depend on whether this country can shift its economy to an alternative 6

7 energy source 2, 3. Oil and gas reservoirs are drilled all around the world and some of the better career opportunities may lie in other countries. According to a 2003 salary survey by the National Association of Colleges and Employers and the insight of Bob Chase, bachelor's degree candidates in petroleum engineering received starting offers averaging $55,987 year, and the average annual salary for a petroleum engineer in 2002 was $83,370, where the middle 50 percent earned between $63,390 and $105,920 year 2, 3. Conclusion: The field of petroleum engineering is a technical but also an exciting profession. Due to the large number of oil-field employees retiring in the near future, the industry is projected to be very promising for petroleum engineers. While society continues to operate on petroleum, there will always be a demand for petroleum engineers. 7

8 Works Cited 1. O*Net Online. 29 August Occupational Information Network < Onetcenter.org/link/summary/ >. 2. U.S. Department of Labor. 29 August Bureau of Labor Statistics < gov/oco.ocos037.htm>. 3. Chase, Bob. Interview with Bob Chase. Marietta College Department Chair. Marietta. 28 August Yergin, Daniel. The Prize. New York: Selley, Richard C. Elements of Petroleum Geology. Second Edition. Academic Press. San Diego, California Maverick Energy Maverick Energy, Inc < com/history.htm>. 7. Paleontological Research Institution. 13 September < org/ed/pgws/history/pennsylvania/pennsylvania.html>. 8. The Career Planner , Careerplanner.com < Job-Descriptions/Petroleum-Engineer.html>. 8

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